New Delhi, September 26

In a move that will provide extra liquidity to sugar mills battling with alarming dues, excess stocks and another record cane production in the 2018-19 kharif season, the Cabinet today approved a comprehensive policy for the sugar industry supplementing earlier measures taken by the government to tackle sugarcane farmers’ anger that became evident in the Kairana Lok Sabha bypoll.

The government announced over Rs 5,500-crore package that seeks to offset the cost of cane and provide transport subsidy for sugar export to enable the beleaguered industry owing several thousand crores to cane growers to improve liquidity and clear arrears.

Rs 1,000/MT will be provided to mills located within 100 km from ports, Rs 2,500/MT for ones located beyond 100 km from the port in coastal states and Rs 3,000/MT for mills located in other than coastal states or actual expenditure, whichever is lower.